Arizona Short Sale

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For property owners in Queen Creek, AZ who are trying to avoid foreclosure, there is some great news. However, even if you avoid foreclosure, you may not be in a great situation with respect to your loan and the value of your home. Over the last few days this has been discussed at government meetings. Optimists think that the housing market is getting better, but it still doesn’t help you avoid foreclosure or increase the value of your home.
This is fantastic news for homeowners that are trying to avoid foreclosure in Phoenix Arizona, but possibly not in other states. Chew on this fact for a second. While many counties, cities, states, and municipalities are in worse condition, they are also trying to avoid foreclosure. Even after the government has tried to help people avoid foreclosure, things haven’t really changed.
The economy is still in the tank, and people are losing their jobs everywhere. Giant companies that we have known and trusted are closing their doors. This constant state of financial burden only creates more mortgage problems and more people trying to avoid foreclosure.
Those are just some of the reasons that some people in Queen Creek, Arizona can not seem to avoid foreclosure and keep losing their homes. People with mortgages can’t afford to make the payments and therefore can not avoid foreclosure. You can’t avoid foreclosure if you can’t make the payments.
Some families choose to default on their payments or just abandon the property knowing that they can not avoid foreclosure.
Some people don’t realize that it isn’t necessary to just walk away to avoid foreclosure. There are several other ways to give yourself a fighting chance. Also, the foreclosure process can take several months and sometimes even years. So, even in you can not avoid foreclosure, you can still stay in your house for a while. Many people are finding alternative ways to avoid foreclosure now.
Many people think that when they stop making payments they will be forced from their homes. It just simply doesn’t happen like that. The Sherriff isn’t standing at the bank the day your payment is due to see if you paid.
The short sale process has become a popular one for people that want to avoid foreclosure. It will allow you to sell your home, and not have to owe the bank any money. You win and the bank wins so that you don’t have to find any legal action. Avoid foreclosure with a short sale.
The temptation is to find a quick fix. That can lead to being scammed by somebody that just wants your money and will leave you with nothing. The short sale process has a proven track record of providing relief for those trying to avoid foreclosure and those banks that simply want their money. They will be tough to deal with, but if you find a short sale specialist to help avoid foreclosure, there is a very high success rate.
If you are the one that needs to avoid foreclosure, try the short sale. It is an effective method to avoid foreclosure.

For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Do you currently find yourself behind on your mortgage and facing an impending foreclosure? Are you living in fear that you may not be able to avoid foreclosure and soon find yourself without a place to call home in Queen Creek, Arizona? Is it possible that you will have to find yourself residing in a place that is new and uncomfortable to you? You need to know that there are several ways to avoid foreclosure and save you house from being foreclosed on. You just need to know the options that are available, what you watch for and what needs to be done going forward. The following are several options available to you. Not all of them are great options, but none the less, they are options. Carefully weigh them and determine which is the best for you.
Loan Modification, the option worth considering
To avoid foreclosure in Queen Creek, AZ, consider contacting your mortgage lender and request a loan modification. This option is alright for those that are not quite making the payments on their existing mortgage. Many times, to avoid foreclosure by using loan modifications, you must meet several requirements. You will need to take the total amount of your mortgage, insurance, and taxes and compare them to your income. If they are more than thirty percent of your income, you may qualify for a modification to avoid foreclosure. However, you may also be required to be in a financial bind that there is not an immediate resolution to.
Bankruptcy, the option to NOT consider
To avoid foreclosure, you can file bankruptcy. This does some major damage to your credit score and can effect your ability to do a multitude of things that could lie in your future. So, while there are very few reasons to consider this a true option, it is, none the less, still an option to avoid foreclosure.
Short Sale of your home, the BEST Option
The short sale of your home is a unique and fairly unknown way to avoid foreclosure. The short sale helps you get the most out of a bad situation. Mortgage lenders will often, though sometimes reluctantly, find this to be the best option for their interests also. So, the short sale is a win/win situation for the lender and the home owner. Here’s a brief synopsis of how it works. The home owner, facing a mortgage that is far greater than the value of the home or facing a mortgage that they can not afford to pay, finds a buyer for their home. The buyer agrees to a price for the home that will not pay off the existing mortgage. The bank, wanting to recoup as much in the sale of the home as they can, will also choose to avoid foreclosure and forgive the remainder of the mortgage. In this way, they will gain more from the sale of the home than they would if the home were sold at foreclosure. So, to avoid foreclosure the bank and the home owner agree to the sale.

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Loss mitigation is the process of helping home owners that are delinquent in paying their mortgage and are close to foreclosure. Loss mitigation is used by home owners in Phoenix, Arizona to save their home and of trying to stop the foreclosure before it happens. It is an intervention created to help homeowners avoid foreclosure through third party that helps with loss mitigation. Even though you may think that loss mitigation is a new process, it has been around for many years, and has the potential to save lots of money and headaches.
Foreclosures are destroying the housing market in Phoenix, AZ. That is why loss mitigation is so important. Because foreclosures are higher than ever, loss mitigation specialists are busier than ever. With ARM still going up, we will very likely see the highest foreclosure rates in history. Loss Mitigation is the best method of halting the foreclosure process leading to the sale of your property at auction. The reason for Loss Mitigation is foster an agreement between the homeowner and the bank that put a permanent end to the foreclosure process.
Homeowners often believe that they can refinance with another lender or even with their same lender. However, because there is a good chance that you have already missed a few payments, your credit score will likely not allow you to refinance. Therefore, the only real option available to you is loss mitigation.
With loss mitigation, the lender can help the borrower avoid foreclosure. With each different situation and lender, the rules of loss mitigation are different. One of the more popular choices for loss mitigation is the short sale of your home. Remember that the home owner and the bank BOTH stand to lose thousands of dollars if your situation goes to foreclosure. So, the short sale can be a very effective loss mitigation technique.
With both lenders and borrowers looking for ways to come out of this with as little damage as possible, loss mitigation is on the forefront of both party’s minds. So, taking advantage of the benefits of a short sale can be a win-win situation for both parties. While the bank will still be taking a loss in most situations and the home owner will have a black mark to their credit score for a few years, it is considerably better than the alternatives.
People searching for loss mitigation are growing in numbers. With banks not wanting to take on the responsibility of owning your property, now is the time to consider a short sale as a means of loss mitigation. With foreclosure and bankruptcy being the dark ending for many people, loss mitigation in any manner is ultra important during your time of need. Because no ending to the financial situation you are in will be without pain, it is crucial that the loss mitigation technique you choose is one that eliminates as much of the loss and heartache as possible.

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

Home owners in Phoenix, Arizona looking to obtain approval for short sale homes need to consider several factors. Short sale homes are on the rise in many parts of the country. This is largely due to the fact that many lenders, such as banks and mortgage companies are taking possession of hundreds of homes due to defaulting mortgages and foreclosure proceedings. So, it only makes sense that these banks do not want MORE homes on their books.
For those that are unfamiliar with short sale homes, a short sale is a process where a home owner has a mortgage that is more than the value of the home. With short sale homes, the home owner can put the house up for sale with the hopes that a low sale price will attract an eager buyer in a short time frame.
In many cases in Phoenix, AZ, short sale homes are priced well below what the home owner owes on the mortgage. The lender will generally allow short sale homes so that they get something out of the situation, instead of getting very little in foreclosure. Bear in mind, however, that the lender must agree to short sale homes. The home should not be put on the market until that approval is made.
When you consider short sale homes as a means of avoiding foreclosure you can help keep your credit report in good standing. Where as, with a foreclosure, your credit will be ugly for a while. You will need to convince the bank that if they allow short sale homes, it would be in their best interest. Because of current market conditions, most lenders already realize this fact.
When buyers consider whether they want to short sale homes, they shold get an appraisal and a market analysis of their homes. This can cost a few hundred dollars, but it is well worth the money when you consider the alternative, foreclosure.
With your new appraisal, go to the lender and ask them to approve of the short sale homes agreement. Explain to them why you need to use the short sale homes process and you may need to provide a hardship letter that details why you can not afford to pay your mortgage any more. The hardship letter is a formality, because the banks have enough foreclosed homes already, but you should still give them a detailed account of your financial troubles.
The loss mitigation department at your lender or bank will usually handle the short sale homes. They are sometimes tough to deal with. So, it may be in your best interest to find a real estate agent that deals with short sale homes. Often times the mitigation department will be more comfortable dealing with someone that is familiar with short sale homes.
With a poor economy and an even poorer housing market, foreclosures are increasing daily. Short sale homes offer the lender and the home owner a way out.

Finding a way to avoid foreclosure in Phoenix, Arizona should be the focus of any person that finds themselves behind in their mortgage. One of the best ways that people have found to avoid foreclosure is using a foreclosure short sale to keep the bank from sending that dreaded letter. If you are one of the many people that has not heard of a foreclosure short sale, it is a complicated process. So, we will explain the foreclosure short sale to you as simply as we can. A foreclosure short sale is when a mortgage lender decides to accept an offer from a buyer that is less than the needed amount for what is owed on the existing mortgage property.
In some cases, a foreclosure short sale in Phoenix, AZ can take as long as six months to close on. There are several reasons for the foreclosure short sale taking so long. Don’t worry about how long it takes to close a foreclosure short sale. However, you should consider why it is important to use a foreclosure short sale and avoid foreclosure completely. The biggest reason to decide on a foreclosure short sale is to keep your credit in relatively unscathed. If you plan to own a home again in the future, it is important to avoid foreclosure through foreclosure short sale.
If you now understand that the foreclosure short sale is right for you, get help. You will be better served in a foreclosure short sale to have a knowledgeable real estate agent with experience in the foreclosure short sale process. Sit down and speak with the real estate agent to gage just how experienced they are with negotiating a foreclosure short sale with lenders and banks. An agent with experience in foreclosure short sale will understand that it takes a lot of patience to negotiate with a bank. Many real estate agents do not have people with experience in foreclosure short sale and will struggle through the process. They could probably still handle a foreclosure short sale, but you will be better served to find someone with experience.
Many times, the best choice you can make when executing a foreclosure short sale is to find an investment group who will be willing to offer you an all cash payment for your property. You will want to avoid contingencies when you execute a foreclosure short sale and try to find a buyer that is willing to close on the property as soon as the mortgage company agrees the offer from your investors. Once again, it is mildly important to find an investor who has some experience in dealing with a foreclosure short sale and is an expert in dealing with bank negotiations.
The most important thing to remember is that a foreclosure short sale will help you keep your credit in a manageable condition. Because you are already in a tough spot, a foreclosure short sale will be the best solution for you.

A mortgage short sale works when a home owner in Phoenix, Arizona owes more debt on a property than the market value of the property. A home owner that qualifies for a mortgage short sale owes more than the property is worth. The lender of the property will agree to forget the difference of the two. For example; you owe $250,000 and the value of your property is $140,000. In a mortgage short sale, the lender will forgive the $110, 000 difference.
The mortgage short sale takes more time than a traditional home sale will take in Phoenix, AZ. The home owner, with the help of a real estate agent that deals with mortgage short sale, will need to find a buyer. This is crucial because the lender will get the property back if a mortgage short sale doesn’t work. When the process starts, the lender will negotiate the terms of the sale sometimes.
The seller can find out the value of a home by looking at what other homes in the area have sold for that are similar. So, if a home that listed at $250,000 sold for $160,000, this would be comparable to your situation. Show this to a lender so that they can consider a mortgage short sale with the difference being only $90,000 instead of the $110,000 listed above.
Many times, a home owner using a mortgage short sale is behind on the payments, but they do not have to be. A mortgage short sale is the choice of a property owner. If you decide to use a mortgage short sale, remember that nothing is certain until there is a formal offer from a buyer. Before the mortgage short sale process starts, you may need to provide the lender with a financial statement, pay stubs, tax returns, a purchase agreement and a letter of hardship.
About a few weeks after all of the paperwork for a mortgage short sale, you will be contacted. Sometimes they will try to collect the outstanding debt from you first and not give you approval.
The steps to complete a mortgage short sale can be difficult. So, if you want to try a mortgage short sale you should contact a real estate agent that has experience completing these types of transactions. You need to have knowledge of the mortgage short sale process and the real estate agent can help with that. The real estate agent in a mortgage short sale should be able to negotiate with your lender.
If you hold a second mortgage on your property, the second mortgage will also have to be negotiated in the mortgage short sale process. Do not forget this important fact.
With the economy struggling and home values dropping like rocks from an airplane, there are not many options out there. The mortgage short sale process is a good option for people that need to find relief from bad mortgage situations.

If you find yourself being one of the millions of people that are in search of foreclosure help, you need to fully understand the situation that you and your lender are in. There are numerous rumors in Scottsdale, Arizona about the banks intentions with regards to foreclosure of your home. Among the most common myths, one that is completely incorrect, is that the bank wants your home. The truth of the matter is, the bank wants to give you foreclosure help. Why? Simply stated, the bank is in the business of money, not in the business of real estate.
There goal, as it was when they first agreed to lend you money, is to recoup that money WITH INTEREST. So, foreclosure help is something that the bank is interested in also. Unfortunately, they do not have the resources to help you find foreclosure help. Choosing to ignore the bank is certainly the furthest you can get from finding foreclosure help.
Another commonly mentioned notion is that the bank in Scottsdale, AZ will not take your money after a certain amount of time will pass. Yet again, the bank wants you to get foreclosure help, but they also want your money. While they would prefer that you pay one lump sum to bring your loan current, there are several noted situations where they can offer you foreclosure help by modifying your loan terms to make payments more suitable for you current financial situation. However, if they feel that it is in their best interest to not give you foreclosure help, and simply foreclose on your property, they understand that they can recoup money by selling your house after foreclosure.
Some people think that the best foreclosure help is to file for bankruptcy. While this can offer some foreclosure help, it generally only freezes the foreclosure process for a period of time. During that time you can search out another means of foreclosure help.
Perhaps the best foreclosure help available to you is the short sale. With a short sale, you get foreclosure help by avoiding foreclosure all together. In the short sale process, you place your home on the market and get an offer in hand. Then, with offer in hand, you go to the bank and explain to them that the home is only worth the price of the offer. Since the value of homes has dramatically decreased over the past several months, chances are that the new offer will not cover the existing loan balance. However, the bank will be inclined to accept the offer and forgive your remainder of the balance because they understand that they will not get nearly as much money if the have to foreclose on the home and sell it in foreclosure.
The short sale is the best option available to anyone that is looking for foreclosure help. It gives the bank the most of what they want, money. Also, it keeps you from having to go through foreclosure.

Having a bankruptcy, foreclosure, or short sale on your credit report creates great challenges when it comes to buying a home, but with time and hard work, it still is possible. Here’s how to overcome these challenges:

1. Mark your calendar accordingly:

A. If you filed Chapter 13 Bankruptcy, you may pursue owning a home 1 year after filing.

B. If you filed Chapter 7 Bankruptcy, you may pursue owning a home 2 years after your discharge date.

C. If you had a foreclosure or short sale, you may pursue home ownership 3 years from the date of the sheriff’s sale/auction or short sale on your previous property. The only exception to the three year rule is if you had what are called “documented extenuating circumstances” such as death, disability, or job loss. Even then, lenders determine your fate on a case by case basis. In my experience, the most time I’ve seen cut off is a year.

D. If you have a bankruptcy and a foreclosure, lenders will require you to wait until your sheriff’s sale/auction date is 3 years old.

2. Reestablish PERFECT credit. A. Pay ALL your bills on time. B. Understand there is no margin for error in the current credit environment. C. Check, clean up, and raise your credit scores to 620+ preferably 740+.

1. Go to annualcreditreport.com and see what is on your credit report.

2. Dispute errors and any accounts included in bankruptcy.

3. Fax in your bankruptcy schedules and discharge to the credit bureaus.

4. If information about your foreclosure or short sale is inaccurate, fax in your foreclosure documentation.

3. Evaluate your economic situation:

A. Is your employment situation stable or unstable?

B. How much house can you afford to buy (including taxes and insurance) and still keep your total debt to income ratio below 40%?

C. How much money do you need to save for a 3.5-5%+ downpayment?

4. Prepare 6-12 Months Prior to Purchasing a Home.

A. Monitor interest rates.

B. Choose a mortgage lender who does FHA or VA loans because these programs give you a great low fixed interest rate even with a bankruptcy, foreclosure, or short sale 2-3 years old.

C. Get pre-approved 1-3 months prior to purchasing.

D. Provide your bankruptcy paperwork, foreclosure, and short sale documents.

E. If you filed a Chapter 13 Bankruptcy, provide your pay history to the trustee.

F. Write a letter of explanation and provide documentation why your bankruptcy, foreclosure, or short sale occurred.

G. Pick at least 2 areas to look for homes.

H. Determine what your housing needs are i.e. number of bedrooms and baths, yard and garage size, fixer upper, etc.

I. Decide if you’re going to work with a realtor or pursue “for sale by owner.”

5. Find the Right Home for You!

A. Negotiate a fair purchase price.

B. Set a closing date after consulting with the sellers and your lender.

C. Provide your lender current paystubs and bank statements.

D. Have a home inspection done and be there when it’s done.

E. After closing, notify your creditors, family and friends about your new address.

F. Move in and enjoy your new home!

Paul Storm has facilitated the credit recovery of thousands of consumers during his decade in the finance industry, through his radio program “Credit 911″, national seminars/workshops, and as the author of “Finding Your Way Back: The Credit Recovery Road Map.” To learn more about Paul Storm go to http://www.credit911live.com

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So, now you have the gist of how the short sell process works in Queen Creek, Arizona. You understand that the bank is taking a lesser payment and allowing you to go about your life. However, you may still be wondering how this all happened. Why would the bank allow me to stop paying and then sell the house for less than the mortgage? This underlying factor is, in our opinion, the grand secret of the short sell.
For the first and possibly only time in your life, you have some leverage over you bank. As stated in part one, they do not want to own your property in Queen Creek, AZ. The are in the money business, not the real estate business. This is the plain and simple reason why they agree to allow the short sell. So, with the ball in your court, the bank can either sit and wait for you to mail the next mortgage payment in (which you are not going to do) or work with you to remedy the situation. Given the trials and tribulations that a foreclosure brings to all parties, the lender is inclined to work with you and approve the short sell of your home. Searching for the quickest solution to this standoff, the bank gives you the right to short sell and recoup their money from a new potential buyer. They, in effect, have stated that they don’t want to try and get your money anymore, but they will gladly take someone else’s money. This is precisely why you, as the home owner are not part of the negotiations during a short sell. Basically, you have said, “I give up my home, and I’ll take no money for the sale of it, but I’m going to live in it until you agree to an offer from one of the many potential buyers that are crawling on top of one another to get your bargain home.”
So, when the lender agrees to a purchase price, usually far below the payoff amount, they have two options. (1) they can forgive you of the remainder of the mortgage and let you walk away owing nothing, or (2) they can exercise their legal right and attempt to force you to pay the difference between the short sell price and the mortgage owed. However, the vast majority of lenders will go with option 1 because the other option, much like foreclosure, just brings more headaches, more legal fees, and more hassles. All of these things cost them money.
The short sell process gets you out of your no equity mortgage or the mortgage that you can not afford to pay with little or no effect on your credit score. This gives you the opportunity to purchase a new home that can help you build equity or simply find a home that is affordable for you.